What appeared to be a $798,000 shortfall in May as indicated by a draft audit is now a $759,000 in “excess coverage” for CPA.
The amount is not excess funds that can be used by CPA, its Executive Director Edward M. Deleon Guerrero said.
After clarifying the issue of the Passenger Facility Charges or PFC with the Federal Aviation Administration during its Anaheim conference in June, he said the FAA agreed with CPA on the designation of PFC revenues as gross revenues.
He said the FAA also commended CPA as a model for the PFC program in the nation.
Deleon Guerrero at the same time commended CPA comptroller Derek Sasamoto.
During Friday’s board meeting, Sasamoto presented to the board CPA Board Resolution No. 2011-1, which designates all PFC revenues as gross revenues as allowed by CPA’s bond indenture and in compliance with FAA regulations.
Deleon Guerrero, for his part, told the board that “when Deloite saw the approval from the FAA, that changed a lot in terms of compliance…. They had amended the 2010 audit. They need this resolution to release the audit.”
According to Sasamoto, CPA is in compliance for the second consecutive year.
He said as long as CPA would manage everything responsibly, “CPA should be able to maintain compliance from now on.”
CPA is now expected to meet its bond ratio of 1.25. Last May during the draft audit, the airport’s ratio was 1.06 while the seaport was at 1.36.
According to the FAA, the PFC program allows the collection of fees up to $4.50 for every enplaned passenger at commercial airports controlled by public agencies. Airports use these fees to fund FAA-approved projects that enhance safety, security, or capacity; reduce noise; or increase air carrier competition.
